I hate to scare off so many people with the headline. However I am hedging the fact that more than likely the next US War would be with North Korea … sometime in the near future. Why North Korea? Well with the US already sitting in the sidelines in Syria and the Russians fortifying the region for some time, I don’t think there is anything impeding with US intervention. I am sorry for the 6 million refugees scattered around the Middle East and Europe, but if you look at the statistics the US economy has not directly suffered from this conflict. It will impact many regional nations for decades and not to forget the literally millions of refugees … what a human tragedy. The situation is beyond words but the US hedged that there would be no impact to the US and really the US itself was the one main conflict with the US economy in the past years. This is an article about gold and silver investments so I will hold my comments on the Syrian War with this sentence.
What about the increasing tension in the South China Sea? Yes, tension is at the highest levels seen so far. China is literally building military islands to fortify their stronghold in the region. The US has also increased patrols but really will not engage with China on their home turf. We really are talking about fish, right? Yes, the Chinese need to feed their 3 billion population, however that is the official declared and census number. It is probably closer to 4 billion unregistered. With the Chinese rivers probably getting close to being depleted with that many people, the Chinese would definitely need to declare as much of the ocean and “theirs” to feed their nation … as any other nation would do. This leaves the US ally, the Philippines, with little support on their fishing rights. The US has stepped up strongholds in the region but the cost is increasing every month. China will ultimately win this battle of the fishes. They are logistically too close and in real need of this area to feed their enormous growing population, even with China curbing birthrates internally. So again, this article is about gold and silver investments so I will hold any further comments on the South China Sea with this sentence.
This leaves North Korea as the main instigator to actually face war with the US …. in the upcoming future … could be many years. Defectors from the North to the South have declared that the people are waiting for the war so the pain can be over. They are ready to lose the war so there can be another leader in place that will provide a future for the people of the North. This also demonstrates that the only means to the end is an actual “war” or at least an attack on US soil or ally. More than likely this would actually mean an attack on the Japan or Taiwan Islands. If North Korea would attack US soil, their best bet would be on Alaska. There would more than likely be no Alaskan human casualties but the annoyance of their aggression. If there would be an actual attack on Japan, Taiwan or Alaska … then the issue would be drastic, mainly in terms of economic depression for the whole world. China is not only a vital trading partner to the US but also the EU, South America and Africa. Tension would rise … on an economic global scale. Even if the Chinese declare that the North Korean attack(s) are not within their intentions or approval, the millions of refugees fleeing north to China would impact their increasing demand of food to their nation. There are many areas this article can lead, so I will hold further comments on North Korea with this sentence.
So that leads, how would a war … or more than likely an attack on an US ally or US territory affect my gold and silver investment. Without going into many details, the price of gold and silver would tremendously increase. The US dollar would decrease. Economic transactions would be at a frozen standstill waiting the the world dominator of goods produced (China) to make official statements and the world to see what actions are taken thereafter. China has been stockpiling gold and silver for the past decade(s) as they fear the trade deficit with the US would never correct itself. With trade at a standstill, the US Dollar would be at historic levels. Only the gold and silver that you own would get you through these times. But I do declare, the silver lining is that this would be temporary. The world (mainly China and the US) would not and could not let these tensions linger, there would be too much losses for both sides. Everything would recover, but it would take time. If you are looking to retire in the next 10-20 years, then you might not see this recovery in the markets from your loses and the only silver lining would be the actual silver and gold that you own.
I am not a political or war historian, I would like to make the choice simple. Hedge your future bets and provide you and your family a way to outlast the potential worst economic crisis in the 21st century. If you buy gold and silver now, you can thrive while many try to survive.